How Housing is Impacted by the FHA’s Insurance Premium Cut

The Federal Housing Administration recently announced cuts to insurance premiums buyers pay for their mortgages; MarketWatch takes a look at how this will affect the housing industry.

January 9, 2015

The White House announced that the FHA is cutting annual mortgage insurance premiums to help more families who have been unable to buy a home enter the market.

Homeowners will save an average of $900 per year due to the 0.5 percentage-point drop in yearly premiums. With the decrease in premiums and an increase in the FHA’s share of the market potentially rising to as much as 25 percent, as many as 14,000 more housing starts could result.